EU financial transaction tax to be unveiled this year

I'm City A.M.'s economics reporter, looking at the news, stories and data that move markets in the UK, Europe and around the globe. I also cover broader developments in the business and political worlds at home and abroad.

Frankfurt is one of the financial centres which could be subject to a new EU financial transaction tax (Source: Getty)

Jake Cordell

Plans for an EU financial transaction tax (FTT) could be published by Christmas after politicians in 10 Eurozone countries agreed to push ahead with plans.

After a meeting in Luxembourg late last night, officials declared this morning they would start drafting the legislation which will allow them to place a levy on the trading of financial products – dubbed a Robin Hood Tax by its advocates – in their own countries.

Pierre Moscovici, European commissioner for economic and financial affairs said "very important progress has been made on the FTT".

He added: "We are designing something which is ambitious and realistic. Hopefully in the weeks to come we will be capable of submitting drafts ... and adopt what could be the first European FTT."

Both France and Germany also hailed last night's progress. French finance minister Michel Sapin said today: "It is the first time we really have a clear agreement from all the countries," while his German counterpart Wolfgang Schauble added: "I hope we will be able to meet the finish line later this year."

The four largest Eurozone members – Germany, France, Spain and Italy – are all taking part. Explaining the reasoning for pushing ahead with the tax, Moscovici said: "This is something that is expected by a lot of people who would like to see the financial sector contribute."